Desjardins Financial Security posts a 13.5% increase in net income for a total of $225.5 million as at December 31, 2011

Desjardins Group's life and health insurance company actively pursued its Canadian expansion and recorded a strong increase in sales  

Group and business insurance sales: up 41.0%
Group retirement savings sales: up 26.7%
Individual insurance sales: up 24.9%
Insurance premium volume: up 6.6%
Net income: $225.5 million
Assets under management and administration: over $30 billion
Return on shareholder equity: 21.2%

LÉVIS, QC, March 14, 2012 /CNW Telbec/ - Desjardins Financial Security (DFS) www.desjardinsfinancialsecurity.com recorded profits of $225.5 million for the year ended December 31, 2011, compared with $198.6 million in 2010, for an increase of 13.5%. DFS, a subsidiary of Desjardins Group specializing in life insurance, health insurance and retirement savings products, posted insurance premium income of $3.1 billion, up 6.6% over 2010. Insurance sales grew by 17.8%, totalling $449.4 million for the year ended December 31, 2011. Sales of savings products stood at $1.7 billion in 2011.

The share of net income attributable to the shareholder, the Desjardins caisses, totalled $210.0 million compared to $202.8 million in 2010. Return on shareholder equity was 21.2%, which ranks among the best in the financial services industry.

DFS's financial stability is excellent, with assets under management and administration of $32.4 billion as at December 31, 2011, compared with $26.3 billion for the same period in 2010.

Asked to comment on these results, Monique F. Leroux, Chair of the Board, President and CEO of Desjardins Group, and CEO of Desjardins Financial Security, said, "Thanks to an increase in sales and rigorous business management, Desjardins Financial Security has once again improved its financial performance. Our life and health insurance company has skillfully navigated a highly competitive market and actively pursued its Canadian expansion."

Denis Berthiaume, DFS's President and Chief Operating Officer, and Senior Vice-President and General Manager of the Wealth Management and Life and Health Insurance sector at Desjardins Group, also expressed his satisfaction: "Desjardins Financial Security's teams continued to work hard throughout the year to achieve our various growth projects. Acquiring MGI Financial in October 2011, developing products and services that meet the needs of our clients from coast to coast, and achieving higher financial results than last year - all these achievements clearly illustrate our teams' commitment and the quality of their work. I'd like to add that we're particularly proud of acquiring MGI Financial because it's a national independent financial services firm that specializes in mutual funds brokerage and it has expanded our national distribution network by an additional 225 representatives in some 150 offices."

Results for Q4 2011

Net income for the period from October 1 to December 31, 2011 was $88.1 million, compared with $31.7 million for the same period in 2010. Insurance sales totalled $87.0 million compared with $77.6 million last year. Insurance premiums totalled $781.6 million, compared to $735.7 million in 2010. Sales of savings products stood at $320.1 million in the last quarter of 2011.

Results by sector

In group insurance, the volume of gross premiums from groups and businesses, and from plans offered through financial institutions, including the Desjardins caisses, stood at $2.5 billion as at December 31, 2011, for an increase of $6.6% over the previous year. Group and business insurance sales totaled $181.1 million, compared with $128.4 million the previous year, for an increase of 41.0%. Sales of plans offered through financial institutions stood at $160.2 million as at December 31, 2011.

In individual insurance, premium volume totalled $583.3 million as at December 31, 2011, compared with $547.2 million in 2010, for an increase of 6.6%. Total sales recorded by the financial security advisors assigned to the Desjardins caisses and by the network of SFL and Desjardins Financial Security Independent Network financial centres stood at 24.9%, for a total of $102.9 million compared to $82.4 million in 2010.

Sales of group retirement savings products totalled $471.1 million compared to $371.7 million from the previous year, for an increase of 26.7%. Individual savings sales stood at $738.3 million, and mutual fund sales were up 5.7% over the previous year to stand at $504.4 million.

About Desjardins Financial Security

Desjardins Financial Security, a subsidiary of Desjardins Group, the leading cooperative financial group in Canada, specializes in providing life insurance, health insurance and retirement savings products to individuals and groups. Every day, over five million Canadians rely on Desjardins Financial Security to ensure their financial security. The Company employs over 4,000 people and administers $32.4 billion in assets from offices in several cities across the country, including Vancouver, Calgary, Winnipeg, Toronto, Ottawa, Montréal, Québec, Lévis, Halifax and St. John's. For more information, visit www.desjardinsfinancialsecurity.com.

Source (for journalists only):

Sarah Twomey
Media Relations Advisor
416-926-2700 or 1-877-906-5551, ext. 2015
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